GBP futures: scope for extra downside

Open interest in GBP futures markets rose for yet another session on Tuesday, this time by nearly 7.2K contracts, according to flash data from CME Group. It is worth noting that open interest has been on the rise since May 13. Volume, instead, shrunk by more than 9K contracts, prolonging the choppy activity.

GBP/USD could retest 1.2600

Cable’s bearish sentiment remains well in place following unabated uncertainty around Brexit and the UK government. In addition, the continuation of the up trend in volume allows for another visit to recent lows in the 1.2600 neighbourhood. The erratic performance in volume, however, could spark some consolidation ahead of further losses in the short-term horizon.